Transformation in Malaysia’s Welfare System: A Study of Developing Countries

Abstract

This article uses two different theoretical perspectives which are the welfare systems in the developing world, and institutional change dynamics to better understand the transition of Malaysia’s welfare system. Based on these theories in the Malaysian situation, it suggests that the welfare system of the country has been proved to have matured and changed. Over the course of economic growth, globalization and socio-productivist policies, this system has significantly transformed three times. Recent legal changes have added layers of complexity in which the government has embedded formal social programs onto long-standing informal welfare networks. This layering has produced complex results, with tensions between informal and formal welfare institutions that can be mutually undermining. The Malaysian case study contributes to our understanding of the characteristics and transformation of welfare regimes in developing countries in the sense that it fills a gap in the literature.